Tesla to freeze hiring, lay off employees next quarter

[Mr. Sparkle]

Source: Reuters

Dec 21 (Reuters) - Another wave of layoffs are coming at electric-car maker Tesla Inc (TSLA.O) in the next quarter, news website Electrek reported on Wednesday, citing a source familiar with the matter. Tesla is also going to freeze hiring, according to the report. The company did not immediately respond to a Reuters request for comment. Shares of Tesla rose 1% to $139.25 in trading before the bell.

The reported move comes at a time when Tesla investors have raised concerns over Chief Executive Elon Musk's distraction with managing Twitter, the social media platform he bought for $44 billion in October. Moreover, Tesla analysts have also cut their price targets on the stock worried that weakness in demand from China will weigh on the EV maker's deliveries next year. Musk in June said Tesla would reduce its salaried workforce by roughly 10% over the next three months.

Read more: https://www.reuters.com/business/autos-transportation/tesla-freeze-hiring-lay-off-employees-next-quarter-electrek-2022-12-21/

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Original article from Electrek

Tesla (TSLA) has told employees that it is implementing a hiring freeze and confirmed that another wave of layoffs is coming next quarter, according to a source familiar with the matter. In June,Elon Musk asked Tesla executives to "pause all hiring" and cut 10% of staff. The CEO has given different reasons to different people for the layoffs, including that he has a "very bad feeling" about the economy. Tesla has been growing fast over the years, and that often results in hiring inefficiencies that eventually lead to rounds of layoffs like this one.

The "hiring pause" was more worrisome as Tesla has several programs growing fast, and it needs to hire thousands of people at new factories in the US and Germany. However, Tesla quickly reversed the hiring pause and started growing its hiring again during the second half of the year. Now Electrek has learned that Tesla is implementing a new hiring freeze and plans further layoffs, according to a reliable source familiar with the matter.

Tesla has communicated to some employees that it is stopping hiring for now. On top of the hiring freeze, Tesla also said that teams will be expected to make layoffs during the first quarter of 2023. It's not clear how extensive the hiring freeze will be as Tesla is still planning to expand in some manufacturing locations. No further details were made available at this time. The moves come as Tesla's stock has been falling all year despite the company's financials hitting new records virtually every quarter.

https://electrek.co/2022/12/21/tesla-tsla-hiring-freeze-layoffs/

[2naSalit]

1. Wonder what...

Will become of all those employees who just relocated to TX?

[RipVanWinkle]

15. The gigafactory in Austin produces Model Y and the Cybertruck.

The Model Y has high demand.

The Cybertruck has over 1.6 million reservations.

It's safe to say that plant in Austin, once it's up to full production capacity, Tesla will need all the employees at the gigafactory, unless something happens.

[GregariousGroundhog]

20. I suspect office employees are more likely to get hit than manufacturing ones

Most companies usually have some discretion on how much money to spend in various departments such as Research and Development, or IT, or HR, et cetera. When times get tough, employees get laid off in these areas and the remaining employees focus more on the "keeping the lights on" instead of working on capital projects (such as replacing an array of ageing servers, or rolling out a new website with increased functionality).

Companies usually don't cut staff in factories unless they are making too many goods and struggling to sell them.

[NullTuples]

26. Is that the Austin factory revealed a month ago to have construction safety & employment violations?

"Whistleblowers claim constant hazards, onsite accidents and wage theft while working on the manufacturing facility in Austin."

"The crux of the WDP’s allegations is that workers at the Tesla factory have had wages stolen from them, sometimes not receiving “any pay for a week’s worth of work performed,” according to WDP attorney Hannah Alexander.

According to the complaints, many workers even worked shifts on holidays, having been promised extra pay, only to be paid nothing at all for their time away from their families.

The other major series of allegations deals with the safety practices of the factory. In the city of Austin, construction contracts follow the WDP’s Better Builder standards. This means that construction companies, at least in theory, are expected to teach a basic level of safety and provide a higher level of worker protection than companies in completely deregulated areas."

Also:

https://www.kvue.com/article/news/local/teslas-texas-gigafactory-labor-employment-violations/269-97f1c319-e907-485f-8629-26f5ac3c84a7

[lucca18]

21. A family member who works for Tesla, recently transferred from the

San Francisco Bay Area to Texas.
They just bought a house, and have two young children.

[SergeStorms]

24. What a culture shock that's going to be.

Not to mention the upheaval of hearth and home. I feel sorry for them. Texas will not sit well in their craw, unless they're republicans. Even if they are it's still going to be quite a change seeing everyone walking around with handguns strapped to their sides.

[DonCoquixote]

2. as much as I do feel sorry for the employees

People had to realize the Titanic crashed into the iceberg. I have less sympathy for the Texans who bought into the line that they had won jobs from Cailfornia because they were better, as opposed to living in a "right to work" state.

[CentralMass]

5. It is hard to blame people who want/need jobs.

[DonCoquixote]

10. I know

especially in dixie where jobs can be scarce, but I also hate the way Texas tried to poach jobs by beign non union and proud of allowing the trich to treat workers like shit.

[SouthernDem4ever]

22. I like to use the phrase "right to work for peanuts" state

That's what it really means.

[dalton99a]

3. Prospective customers are scared of the apartheid man-child

And there are better choices

[MichMan]

4. There is going to be more consolidations and layoffs across the entire auto industry

Ford already announced quite a few layoffs a couple months ago. It tends to be very cyclical at times as those of us living in SE Michigan are well aware of over the years.

Many of the manufacturers rely on China sales for a significant portion of their revenues.

[CentralMass]

6. There are going to layoffs in other industries as well.

[OneCrazyDiamond]

18. Tech is getting battered too. NT

[bronxiteforever]

7. Musk and Texas

Gov. Greg Abbott asks Elon Musk to move Twitter to Texas
The Republican leader pitched the relocation after news of Musk's acquisition of the social media platform broke Monday.

https://www.chron.com/politics/article/Elon-Musk-Twitter-Texas-Greg-Abbott-Trump-account-17125708.php

[Lovie777]

12. What a surprise .....

not.

Abbot and the other red states are trying to cripple blue states' economy. Isn't gonna happen. As to population, that is not going to happen neither. Twitter will be the RWers haven, and other social media combination will be stronger with open minded, compassionate people, Liberals/Progressives will flourish, plus, we tend to be more creative.

[bronxiteforever]

17. +1

[turbinetree]

8. Got a cash crush there dumbshit.... or maybe your Tesla stock is below or around 150.00 a share

and now your ego is causing people to be laid off and Tesla can't support your failed twitter endeavor....Merry Christmas....and more wishy washy from a narcissist jerk-off.......maybe she can ask the Russian Propagandist who got the selfie in Qatar what he should do

https://www.mediaite.com/news/elon-musk-seen-snapping-a-selfie-with-notorious-russian-state-propagandist-at-the-world-cup/

[machoneman]

11. The idiot never knew that progressives/liberals were most likely to buy his cars.

Not only the high cost deters MAGATS from buying but new technology (i.e. changes) isn't in the wheelhouse of those folks. Pissing off our side was damn stupid!

[marmar]

13. Start at the top.

[mopinko]

14. this does not bode well for the quality of the cars.

never a good idea to buy s complex product from a dying biz.
i’d assume that whatever # of yrs the warranty said, it would be gone when the company went belly up.

[Dopers_Greed]

16. The CEO going full QAnon probably isn't helping

I feel bad for the people losing their jobs because of e-Loon Musk tanking the brand

[republianmushroom]

19. the down hill slide at Tesla has begun.

[Mr.Bill]

23. One thing usually happens when a layoff is announced.

Their stock goes up, even if only temporarily. If it goes up watch Musk sell some more.

After he destroys Tesla and Twitter, I wonder what toy he will buy and break next.

Of course with him being a sociopath, there is zero regard the thousands of lives that are disrupted at best.

[W T F]

25. I guess nobody wants to do business with a right wing, QAnon Trump humper.